Global tomato paste market – who are the leaders and what makes them successful?

EastFruit team responds to frequent requests about the processing segment of fruits and vegetables. Today we will look into tomatoes and the main tomato-based processed product – the tomato paste.

Global Tomato Paste Market and Trends

According to EastFruit analyses the global tomato market is estimated at USD $210 billion in 2024. In five years, analysts expect it to reach around USD 260, growing at around 4-5% per year, which is rather moderate considering the global inflation rates.

Key Tomato Paster Exporting Countries

1. Italy
   • Export Volume: Approximately 1.2 million metric tons in 2024.
   • Primary Markets: United States, Germany, Japan.
   • Focus: High-quality, authentic Italian products, including organic and premium-quality tomato paste.
2. China
   • Export Volume: 1 million metric tons.
   • Primary Markets: Africa, Middle East, Southeast Asia.
   • Focus: Competitive pricing, improving product quality, and enhancing branding efforts.
3. United States
   • Export Volume: 700,000 metric tons.
   • Primary Markets: Canada, Mexico, United Kingdom.
   • Focus: Favorable trade agreements and logistical proximity.
4. Spain
   • Export Volume: Significant, contributing to the global supply.
   • Primary Markets: Various, including European countries.
5. Portugal, Chile, Turkey, Greece, Iran, Egypt
   • Export Volume: Collectively, these countries shipped over 3.5 million tonnes of tomato paste.

Key Tomato Paste Exporting Companies

1. Mutti (Italy)
   • Known for high-quality tomato products, including organic and premium lines.
2. Xinjiang Chalkis (China)
   • Major player in the Chinese market, focusing on cost-effective production and expanding market presence.
3. Morning Star Company (USA)
   • Leading U.S. exporter with a focus on quality and sustainability.
4. Conesa Group (Spain)
   • Significant exporter with a strong presence in European markets.
5. Sugal Group (Portugal)
   • Known for its extensive range of tomato products and strong export capabilities.

Key Tomato Paste Importing Countries

1. Germany
   • Major importer of high-quality tomato paste, particularly from Italy.
2. Japan
   • Significant market for premium and authentic tomato paste products.
3. Nigeria
   • High demand for cost-effective tomato paste, primarily sourced from China.
4. United Kingdom
   • Important market for U.S. and European tomato paste.
5. Canada, Mexico
   • Key importers of U.S. tomato paste due to favorable trade agreements and proximity.

Success Factors in the Tomato Paste Market

1. Quality and Authenticity
   • High-quality and authentic products, especially from Italy, are in demand in premium markets like the U.S., Germany, and Japan.
2. Competitive Pricing
   • Cost-effective production and competitive pricing are crucial for markets in Africa, the Middle East, and Southeast Asia, where Chinese products are popular.
3. Trade Agreements
   • Favorable trade agreements and logistical proximity enhance market access, as seen with U.S. exports to Canada and Mexico.
4. Product Innovation
   • Development of value-added products, such as organic and premium-quality tomato paste, caters to niche markets and drives growth.
5. Branding and Marketing
   • Strong branding and marketing efforts, particularly by Chinese producers, help in expanding market presence and improving product perception.
6. Health and Convenience
   • Rising consumer demand for convenient and ready-to-use cooking ingredients, along with the health benefits associated with tomato products, supports market growth.

Raw material production specifics

Raw material for tomato paste is a crucial success factor. In the past two decades, the raw material aspect of tomato paste production has undergone a true revolution. According to Andriy Yarmak, an economist in the Investment Centre of the Food and Agriculture Organization of the United Nations (FAO), the widespread adoption of industrial tomato varieties that ripen simultaneously and are suitable for mechanical harvesting, the spread of drip irrigation systems, and the improvement of tomato harvesters have fundamentally changed this industry. As a result, in most of the major tomato paste exporting countries, the cultivation of raw materials is almost entirely mechanized. Here is how things stand regarding raw material production in key countries.

Italy

• Production Method: Italy is renowned for its high-quality tomato paste, often produced from tomatoes grown in the country’s fertile regions like Emilia-Romagna and Campania.
• Sourcing: Italian processors typically source tomatoes from large farms and cooperatives. These farms are often family-owned and have been cultivating tomatoes for generations.
• Success Factors: The focus on quality, traditional farming methods, and the use of specific tomato varieties like San Marzano contribute to the premium quality of Italian tomato paste

China

• Production Method: China is one of the largest exporters of tomato paste, with extensive production facilities in regions like Xinjiang.
• Sourcing: Chinese processors often use large-scale industrial farms. These farms are highly mechanized and can produce vast quantities of tomatoes at a lower cost.
• Success Factors: Competitive pricing, large-scale production, and improving quality standards have helped China become a dominant player in the global market

United States

• Production Method: The U.S., particularly California, is a major producer of tomato paste.
• Sourcing: U.S. processors typically source tomatoes from large, specialized farms. These farms use advanced agricultural techniques and technology to maximize yield and quality.
• Success Factors: Favorable climate, advanced farming technology, and efficient logistics contribute to the success of U.S. tomato paste exports

Spain

• Production Method: Spain is another key exporter, with a focus on both quality and quantity.
• Sourcing: Spanish processors source tomatoes from both large farms and cooperatives. The country’s diverse climate allows for a variety of tomato types to be grown.
• Success Factors: Strong agricultural practices, cooperative farming, and a focus on both domestic and international markets help Spain maintain its position in the market.

Portugal, Chile, Turkey, Greece, Iran, Egypt

• Production Method: These countries also contribute significantly to the global tomato paste market.
• Sourcing: They use a mix of large farms and smallholders. For instance, in Turkey and Iran, smallholders play a crucial role in the supply chain.
• Success Factors: Each country leverages its unique climatic conditions and agricultural practices to produce competitive tomato paste.

General Success Factors for Raw Material Production

1. Quality of Tomatoes: High-quality, high-solids tomatoes are essential for producing premium tomato paste. Varieties like San Marzano in Italy are particularly prized.
2. Efficient Supply Chains: Successful exporters have well-established supply chains that ensure a steady supply of fresh tomatoes during the harvest season.
3. Technological Advancements: Use of advanced agricultural techniques and processing technology to maximize yield and maintain quality.
4. Market Access: Favorable trade agreements and strong export logistics help in reaching global markets efficiently.
5. Branding and Marketing: Strong branding, particularly for premium products, helps in differentiating products in competitive markets.

In summary, successful tomato paste exporters use a combination of large farms, cooperatives, and smallholders to source their raw materials. The focus on quality, efficient supply chains, and advanced technology are key factors contributing to their success.